You offer benefits to your employees to attract and retain the best talent in today’s competitive market. But did you know that you may have legal and regulatory risks from those benefits?
Employee lawsuits can happen when the details of your plans are not clearly and fully communicated. In 2018 alone there were more than 6,000 employee lawsuits exceeding $300 million in settlements. And penalties from a Department of Labor audit could be substantial.
So, the question is: What happens when an employee is denied a claim or a surviving spouse did not receive a benefit they were expecting? They hire a lawyer to sue everybody involved, including you.
You may believe that your insurance carrier or broker has already shielded you from your ERISA liability associated with your benefits, but this is a common misconception. As the employer, it is your sole responsibility to be compliant with the law.